But US protectionism can prove a blessing in disguise for Indian IT industry

Following through on a nativist campaign agenda, US President Donald Trump’s administration is considering changes in H-1B visa regulations which will have an adverse impact on skilled Indian immigrants seeking permanent residency. This is on the heels of similar moves over the last year which aim to transition to a stringent visa regime. For sure, these developments will have a negative fallout on Indians seeking Green Cards. But the impact on India’s information technology need not be adverse. On the contrary, it could catalyse positive changes.

According to Nasscom, the technology industry accounts for less than 15% of H-1B visas. Even if Indians get the lion’s share of these visas, it’s skilled professionals from other areas who are recipients. These visas exist for a good reason: US has a skill shortage in some areas. Separately, another ongoing development is expected to undermine nativist policies: rapid advancements in technology have begun to bypass protectionist barriers. This technological advancement along with a concomitant global search for skills will present India with new opportunities – it is for government and companies to get their respective strategies in place to harness them.

US technology chiefs opposed to Trump administration’s visa policies warn that skilled foreign workforce, stopped from pursuing opportunities in US, may end up starting new disruptive companies at home. This is exactly what Indian government must encourage. The policy environment must lighten the overall regulatory and tax burden to encourage young technology entrepreneurs to create a new wave of disruptors at home. Simultaneously, Indian IT industry needs to upgrade the skills of its workforce to not only cope with ongoing changes but also remain a magnet for American, Chinese and other multinational companies. US protectionist efforts may eventually turn out to be a blessing in disguise.